The $13 billion helicopter that the President decided was perfectly adequate

Wars & Conflicts · Published 9 October 2026 Swipe more like this →

In short: In 2005, the US selected the VH-71 Kestrel to replace the Marine Corps' presidential transport fleet. But engineering hurdles and skyrocketing costs turned the ambitious project into a billion-dollar cautionary tale, eventually leading President Obama to favor his existing, aging helicopters instead.

Originally sold as the US101, the VH-71 Kestrel served as a version of the AgustaWestland AW101. Developed by a consortium including Lockheed Martin, AgustaWestland, and Bell Helicopter, the project aimed to replace the aging Sikorsky VH-3D and VH-60N fleets. While the three-engine design was seen as a decisive advantage over twin-engine rivals, the program was quickly marred by delays and cost overruns.

By 2007, development costs had surged to $2.4 billion, and the projected cost for the full fleet had climbed to $4.2 billion. By March 2008, estimates suggested the total cost would reach $11.2 billion, or roughly $400 million per helicopter. Lockheed Martin attributed these escalations to extensive, unanticipated government modifications, while a 2011 GAO report suggested the government's lack of flexibility and refusal to compromise also hindered the program.

The project's end came in June 2009, when the U.S. Navy terminated the contract after spending approximately $4.4 billion. At the time of cancellation, nine VH-71s had already been delivered. President Barack Obama, noting the $13 billion projected cost for the planned 28 helicopters, remarked that his current helicopter seemed "perfectly adequate." The nine completed aircraft were later sold to Canada for $164 million to serve as spare parts for their CH-149 Cormorant fleet.

The fallout from the cancellation remains a point of debate. While some lawmakers urged the administration to continue a variation of the program, the Congressional Research Service estimated that terminating the project would waste over $3 billion in sunk costs. They also noted that a successor program might not be ready until 2024, leaving the existing fleet in service for over 50 years.

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